Question 4007 of 287 · Texas Life, Accident and Health Agent Exam
Which of these is an example of a nonqualified plan?
Exactly one answer is correct.
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Correct answer to question 4007
- C: A deferred compensation agreement for selected executives
Explanation
Nonqualified plans do not meet all IRS requirements and may discriminate in favor of key employees. The employer generally does not get a deduction until the benefit is paid.
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